Russia to help Iceland overcome the crisis

Iceland has asked Russia for a loan of around €4 billion to stabilise the country's financial system. The talks on the loan are due to start in Moscow on Tuesday.

“Russia is ready to provide support for other countries. Iceland has referred to us and if we can find a mutually beneficial mechanism the loan will be given,” said Russia’s Finance Minister Aleksey Kudrin.

He added that Russia has always helped other countries with loans.

Iceland's once-flourishing economy came close to collapse as credit markets froze.

It's been forced to take over three of the country's largest banks, shut down stock trading and abandon attempts to defend its free-falling currency.

However, according to the country’s Prime Minister, Geir Haarde, Iceland has refused the aid offered by the International Monetary Fund earlier this week.